Kalgoorlie-Boulder economic powerhouse ripe for investment
With more than $16.5 billion in pipeline projects, Kalgoorlie-Boulder is primed to meet the insatiable demand for clean-energy mineral resources. Investment opportunities are ripe as momentum builds for a critical minerals hub.
One of the most highly mineralised regions in the word, Kalgoorlie-Boulder’s Golden Mile alone has produced more than 60 million ounces of gold – so far. Now as lithium, cobalt and rare earths compete for centre stage, Kalgoorlie-Boulder is poised to become a critical minerals hub, contributing vital resources for the transition to a net zero economy.
They are not just buzz words. The expanding opportunities throughout the mineral resources sector – in base, precious and critical minerals – are evidenced in investment, export and royalties statistics that show the rapid growth in Western Australia’s Goldfields region.
“We know that our critical minerals are at the forefront of the global energy transition,” Chamber of Minerals and Energy of Western Australia chief executive officer Rebecca Tomkinson said at this week’s inaugural AusIMM Critical Minerals Conference in Perth. “The path to net zero runs right through Western Australia.”
Kalgoorlie-Boulder – the heart of the Kalgoorlie-Boulder Economic Zone (KBEZ) – is at the hub of WA’s journey. An economic powerhouse, the KBEZ represents 80% of the Goldfields-Esperance economy, which in turn is the second biggest regional contributor of mineral royalties in WA – Goldfields-Esperance royalties reached $479 million in 2021-22. There was a staggering 20.8% in economic growth in the KBEZ from 2020-21, and 10.7% labour force growth over the past three years. Mining provides one in every two jobs, with manufacturing, construction, essential services such as health and education, and transport and logistics the next biggest contributors respectively to the KBEZ’s economic output. There are significant investment opportunities for SMEs, including in tourism and Indigenous business.
Confidence in Kalgoorlie-Boulder’s significant gold, nickel and lithium reserves are reflected in major investments, with 10 major projects that are under construction, consideration or have funds committed making up $8.3 billion of combined expenditure. They include BHP Nickel West’s West Musgrave Copper and Nickel Project, which has $1.7 billion committed; Liontown Resources’ $1.62 billion Kathleen Valley Lithium Mine and Refinery, which are under construction and consideration respectively; the Northern Star Resources Super Pit expansion, which has $1.5 billion committed; and the IGO $825 million Cosmos Nickel Project, which is under construction.
Above: Lynas Rare Earths samples. Image credit: Lynas Rare Earths
Lynas Rare Earths’ investment of more than $1 billion is of particular note. The construction of Lynas’ $730 million rare earths processing facility in Kalgoorlie-Boulder is a game-changer for the City, establishing a new industry in line with State and Federal goals to extract more value from the mining sector through downstream processing. The only scale producer of separated rare earth materials outside of China (10% of the world’s rare earths are at Lynas’ Mount Weld mine in the Goldfields region, the rest are in China), Lynas is also investing upwards of $500 million into the extension of the Mount Weld mine to meet accelerating demand for rare earth materials.
Above: Lynas Rare Earths Processing Facility in Kalgoorlie-Boulder. Image credit: Lynas Rare Earths
Lynas’ confidence in Kalgoorlie-Boulder has spurred additional industry confidence and land activation, including the release of additional strategic industrial land near the Lynas processing facility; the activation of the 696ha Mungari Industrial Estate, near Kalgoorlie-Boulder, targeted at downstream processing; and plans by Pure Battery Technologies to build a $460 million battery material refinery at Kalgoorlie-Boulder. There is also significant growth and investment opportunities in Kalgoorlie-Boulder’s world-class Mining, Equipment, Technology and Services (METS) sector.
Above: Kalgoorlie-Boulder performs a critical role as a key transport and logistics centre, ensuring business and industry can access national and global markets efficiently. Photo credit: City of Kalgoorlie-Boulder
Rising commodity prices, particularly for gold and nickel, are also driving significant exploration investment. From 2016-22, annual gold exploration expenditure in WA increased by 147% and annual nickel/cobalt exploration expenditure by 337%; the gold price went up 47% during the same period, and the nickel price by 105% (Source: Acil Allen Consultants). This is translating to activity on the ground - there are 163 mines currently operating in the KBEZ, 78 under construction or consideration, and strong confidence in the future – Kalgoorlie-Boulder has more than 50 years of identified mineral resources.
But the global shifts related to climate change and geopolitical relationships have created other emerging industries and investment opportunities as well. In Kalgoorlie-Boulder, there is strong interest in establishing local production facilities for industrial reagents such as sulphuric and hydrochloric acids – critical inputs into mining operations and downstream processing – and the reprocessing of byproducts. The expertise in this area has dwindled to a handful of areas globally, and the technical knowledge of lithium and rare earth elements processing is one of China’s true monopolies in this space.
But just as it has with underground mining, Kalgoorlie-Boulder may become world-renowned for this capability with enough industrial activity, says Associate Professor Laurence Dyer, Deputy Head of School Metallurgical Engineering at Curtin University’s internationally renowned Western Australia School of Mines (WASM), which is based in Kalgoorlie-Boulder.
“Investment in the region from entities such as Lynas, BHP Nickel West and Curtin University is creating an environment to develop leading expertise in pyrometallurgical processing of critical minerals,” Associate Professor Dyer says. “There is the opportunity to develop a pyrometallurgy hub to recover valuable minerals from mining and downstream processing products.”
Close ties between academic research and industry support the development and growth. Kalgoorlie-Boulder’s Curtin campus is an exemplar for partnerships and investment in high-tech facilities, and part of the exciting $200 million Federal Government, industry and university Trailblazer initiative, to drive applied industry-based research supporting technology development and establish a commercialisation hub.
Kalgoorlie-Boulder’s economically-focused local government authority is underpinning the movement, with a dedicated Development and Growth Unit that connects investors to key government agencies and advocates for continued State and Federal Government support, including in the activation of strategic industrial land; and the common-user infrastructure and connectivity so critical to industry growth. Kalgoorlie-Boulder performs a critical role as a key transport and logistics centre, connected by major highways, national and state rail and a major regional airport, and with an east-west fibre optic cable for NBN connections and multiple internet providers.
City of Kalgoorlie-Boulder Chief Executive Officer Andrew Brien says the City is investing heavily in its economic diversification work, excited about the next stage in Kalgoorlie-Boulder’s mining economy.
“I’ve always seen Kalgoorlie-Boulder as the heart of the Goldfields, and without the heart you’ve got nothing. Our region kick-started WA’s economy with the goldrush of the 1890s and now there’s a new rush on critical minerals. Kalgoorlie-Boulder is already a key driver of WA’s economy through its mining and other industries and highly skilled residential workforce, based in Kalgoorlie-Boulder because of its high liveability. However, the City is primed to contribute even more through the development of a critical minerals hub. The potential for this is unlimited, and we’re excited for business and investors to be part of the journey.”
To view the 2024 Kalgoorlie-Boulder Investment Prospectus go to:
Investment Prospectus » City of Kalgoorlie-Boulder (ckb.wa.gov.au)